factual

Does the Ben Jerrys approval requirement for marketing materials extend to pricing?

Ben_Jerrys Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 12.7 If OPERATOR desires to use marketing and promotional plans and materials that have not been provided or previously approved by BEN & JERRY'S, OPERATOR shall submit samples of all such marketing and promotional plans and materials to BEN & JERRY'S (as provided in Section 12.5 herein) for prior approval (except with respect to prices to be charged).

  • 7.9 OPERATOR agrees that BEN & JERRY'S, in order to preserve BEN & JERRY'S legitimate interest in protecting the quality of its Products and the BEN & JERRY'S brand, reputation and goodwill, reserves the right, to the fullest extent allowed by applicable law, to: establish maximum, minimum or other pricing requirements with respect to the prices OPERATOR may charge for the Products offered and sold hereunder; recommend retail prices; advertise specific retail prices for some or all Products sold by OPERATOR, which prices OPERATOR will be compelled to observe; engage in marketing, promotional and related campaigns, which OPERATOR must participate in and which may directly or indirectly impact OPERATOR's retail prices; and otherwise mandate, directly or indirectly, the prices which OPERATOR may charge.

Source: Item 22 — CONTRACTS (FDD pages 133–134)

What This Means (2025 FDD)

According to Ben Jerrys's 2025 Franchise Disclosure Document, franchisees are generally required to submit marketing and promotional materials to Ben Jerrys for approval. However, this approval requirement does not extend to the prices that franchisees charge.

Ben Jerrys retains the right to establish maximum, minimum, or other pricing requirements for the products franchisees sell. They can also recommend retail prices, advertise specific retail prices that franchisees must observe, and implement marketing campaigns that may directly or indirectly impact franchisee retail prices. This means that while franchisees can create their own marketing materials without approval regarding pricing, Ben Jerrys has significant control over the pricing itself.

This level of control over pricing is not uncommon in franchising, as it helps maintain brand consistency and competitiveness. However, it's crucial for prospective franchisees to understand the extent of this control and how it might affect their profitability. Franchisees should discuss with Ben Jerrys how pricing strategies are determined and what flexibility they have in setting prices to maximize their revenue.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.